Supply Chain Management: Sourcing and Manufacturing
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Questions and Answers

What is the characteristic of job shop manufacturing?

  • Products are passed through the same sequence of operations
  • Assembly usually takes place offsite (correct)
  • Similar items are provided on a repeat basis
  • Assembly takes place onsite

    • Batch manufacturing involves one-off production.

    False

    What is the purpose of arranging machines in a U-line cell?

    To allow a worker with sufficient skills to perform all the operations on a part by following the product along one side of the U, around the closed end of the U and back up the other long side of the U.

    In a rabbit chase cell, the machines are arranged in a ______.

    <p>circle</p> Signup and view all the answers

    What type of manufacturing is used for indiscrete products that run continuously through various refining, cooling, and separating steps?

    <p>Continuous Flow</p> Signup and view all the answers

    Having two or more workers in the U-line cell can decrease the rate of output.

    <p>False</p> Signup and view all the answers

    Match the following manufacturing types with their characteristics:

    <p>Job shop = Assembly usually takes place offsite Batch = Similar items are provided on a repeat basis Line = Products are passed through the same sequence of operations Continuous Flow = Indiscrete products run continuously through various refining steps</p> Signup and view all the answers

    What is the primary function of the sourcing stage in the supply chain?

    <p>Selecting suppliers, establishing policies and assessing performance</p> Signup and view all the answers

    What type of products are typically produced using continuous flow manufacturing?

    <p>Liquid or gas-like products</p> Signup and view all the answers

    The delivery stage of the supply chain only involves transporting products to customers.

    <p>False</p> Signup and view all the answers

    What are the three nodes in a simple supply chain?

    <p>The supplier, the company, and the customer</p> Signup and view all the answers

    The extended supply chain considers the ________________'s supplier on the upstream side.

    <p>supplier's</p> Signup and view all the answers

    What is the main advantage of a supplier having a high level of power in negotiations?

    <p>The supplier can dictate terms more easily</p> Signup and view all the answers

    What is the primary purpose of the return stage in the supply chain?

    <p>To manage product returns for quality reasons or recycling</p> Signup and view all the answers

    The customer in a supply chain is always the end consumer.

    <p>False</p> Signup and view all the answers

    The sourcing strategy matrix should be used for all categories of items.

    <p>False</p> Signup and view all the answers

    What is the main characteristic of bottleneck items?

    <p>They have a low spend but provide significant risk to an organization if there is no supply.</p> Signup and view all the answers

    Match the following supply chain stages with their descriptions:

    <p>Sourcing = Buying goods or services to meet planned or actual demand Manufacturing = Transforming raw materials into finished products Delivery = Providing finished goods to customers Return = Managing product returns for quality reasons or recycling</p> Signup and view all the answers

    What is the primary function of the manufacturing stage in the supply chain?

    <p>Transforming raw materials or sub-assemblies into finished products</p> Signup and view all the answers

    The sourcing strategy matrix is adapted from __________ (1983).

    <p>Kraljic</p> Signup and view all the answers

    Which of the following categories has a high spend but many suppliers?

    <p>Leverage items</p> Signup and view all the answers

    The purchasing process is a one-time event.

    <p>False</p> Signup and view all the answers

    Match the category groups with their characteristics:

    <p>Routine items = Low expenditure items with low risk to the business Bottleneck items = Low spend but high risk to an organization Leverage items = High spend but many suppliers Critical items = High expenditure items with high risk to the business</p> Signup and view all the answers

    What is the main goal of sourcing leverage items?

    <p>To reduce the money spent and make them routine items.</p> Signup and view all the answers

    What replaced craft manufacturing in many industries during the industrial revolution?

    <p>Mass manufacturing</p> Signup and view all the answers

    Craft manufacturing is still the dominant method of manufacturing in the modern world.

    <p>False</p> Signup and view all the answers

    What is a characteristic of products manufactured using the craft manufacturing method?

    <p>Unique and typically of extremely high quality</p> Signup and view all the answers

    With mass manufacturing, all parts were now ______________________, ensuring the compatibility of a replacement part with a variety of vehicle models.

    <p>standardised</p> Signup and view all the answers

    What is a benefit of mass manufacturing compared to craft manufacturing?

    <p>Reduced manufacturing time</p> Signup and view all the answers

    In modern manufacturing, man, method, and material have become less important.

    <p>False</p> Signup and view all the answers

    What is the main characteristic of the project manufacturing process?

    <p>A one-off manufacturing process that meets very specific customer requirements and is too large to be moved once completed</p> Signup and view all the answers

    What is the main purpose of the Bill of Materials (BOM) in MRP?

    <p>To state what components are required for a product</p> Signup and view all the answers

    Distribution Requirements Planning (DRP) is primarily concerned with determining production capacity.

    <p>False</p> Signup and view all the answers

    What are the main differences between conventional manufacturing companies and those using the JIT concept?

    <p>Conventional companies have long set-up times, large inventory, floor space and lot sizes, and high defect rates and machine breakdowns. Progressive JIT companies have short set-up times, and low defect rates.</p> Signup and view all the answers

    The MRP system allows the planner to have a clear plan of order quantity and timing for each component or raw material, ensuring that these orders arrive at the right time to be available for ______________.

    <p>assembly</p> Signup and view all the answers

    What is the primary goal of Capacity Requirements Planning (CRP)?

    <p>To discern a firm's production capacity and whether it can meet its production goals</p> Signup and view all the answers

    Match the following terms with their corresponding descriptions:

    <p>Bill of Materials (BOM) = States what components are required for a product Inventory file = Tracks the quantity of components already in stock Capacity Requirements Planning (CRP) = Determines a firm's production capacity Just-In-Time (JIT) = Organises all activities in the make process to happen exactly at the right time</p> Signup and view all the answers

    In a Just-In-Time manufacturing system, inventory, floor space, and lot sizes are typically large.

    <p>False</p> Signup and view all the answers

    What happens to customer and forecasted demand during the Distribution Requirements Planning (DRP) process?

    <p>They are translated into purchase orders.</p> Signup and view all the answers

    Study Notes

    Supply Chain Management

    • The supply chain process consists of five stages: plan, source, make, deliver, and return.
    • The source function involves selecting suppliers, establishing policies, and assessing performance.
    • The make function transforms raw materials into finished products to meet customer demand.
    • The deliver function includes all processes that provide finished goods to customers.
    • The return function involves reverse logistics or product returns, which can occur for quality reasons, recycling, or post-delivery customer support.

    Supply Chain Architecture

    • A simple supply chain consists of three nodes: supplier, company, and customer.
    • An extended supply chain includes three additional nodes: supplier's supplier, customer's customer, and end consumer.
    • The distinction between these nodes is the different types of customers that exist between the company and the end consumer.

    Category Sourcing Process

    • Buyers can choose a sourcing strategy.
    • The sourcing strategy matrix is a tool to segment different category groups and set different strategies to manage risk.
    • The matrix categorizes items into four groups: routine, bottleneck, leverage, and critical items.

    Manufacturing

    • Craft manufacturing involves making items by hand and with the aid of tools, producing unique and high-quality products.
    • Mass manufacturing replaced craft manufacturing with the industrial revolution, offering advantages such as standardized parts, reduced manufacturing time, and greater manufacturing output.

    Types of Manufacturing Process

    • There are five classic types of manufacturing processes: project, job shop, batch, line, and continuous flow.
    • Project manufacturing involves a one-off process that meets specific customer requirements.
    • Job shop manufacturing is a one-off process that meets unique customer requirements, with assembly taking place offsite.
    • Batch manufacturing involves providing similar items on a repeat basis, usually in larger volumes.
    • Line manufacturing involves passing products through a sequence of operations from start to finish.
    • Continuous flow manufacturing applies to certain indiscrete products that run continuously through refining, cooling, and separating steps.

    Manufacturing Planning

    • The product structure or Bill of Materials (BOM) is the "recipe" for a product, stating what components are required.
    • The inventory file states how many of the required components are already in stock and will not be purchased.
    • Capacity requirements planning (CRP) determines a firm's production capacity and whether it can meet its production goals.
    • Distribution Requirements Planning (DRP) determines the right quantity of finished goods to be sent to each distribution centre or warehouse to meet customer demand.

    Just-In-Time (JIT) Manufacturing Strategies

    • JIT organizes all activities in the make process to happen exactly at the time they are needed.
    • JIT companies have short set-up times, transportation and other lead-times, and low inventory, floor space, and lot sizes.
    • JIT companies also have lower defect rates and machine breakdowns compared to conventional manufacturing companies.

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    Description

    Learn about the sourcing function in supply chain management, including purchasing and procurement, and the manufacturing stage of the process. Understand the importance of selecting suppliers, establishing policies, and assessing performance.

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